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How AI Can Revolutionize Your Company’s Loyalty Program

Using AI With a Loyalty Program

One of my core competencies is helping companies design and execute customer loyalty programs. I’ve written before on what makes an amazing loyalty program. Today, I want to talking about using AI with a loyalty program.

In the competitive landscape of customer retention, businesses are increasingly turning to artificial intelligence (AI) to elevate their loyalty programs. AI offers unparalleled opportunities to personalize experiences, predict customer behavior, and optimize reward structures. Let’s explore four compelling examples of how AI can be seamlessly integrated into loyalty programs, transforming them into powerful tools for customer engagement.

Disclaimer: Whenever you are designing a loyalty program or improving an existing one, always focus on improving customer experience. The experience and relationship that your customer has with your brand is what drives loyalty. If your loyalty program focuses strictly on encouraging additional transactions, then you run the risk of having the customer assign loyalty to your price or sale, rather than your brand.

Remember, you build loyalty after the purchase, not before.

Four Ways to Use AI to Improve Your Loyalty Program

Personalized Rewards with AI Algorithms

One of the most impactful ways AI enhances loyalty programs is through the implementation of sophisticated algorithms that analyze individual customer behavior and preferences. This enables businesses to tailor rewards and incentives with remarkable precision.

Example: Starbucks Rewards Program

Starbucks, a global coffeehouse chain, leverages AI to analyze customers’ past purchases, preferences, and even the time of day they visit. The Starbucks Rewards program uses this data to offer personalized rewards, such as favorite drink discounts or exclusive promotions. This level of personalization not only strengthens customer loyalty but also encourages higher spending and more frequent visits.

You can view an in-depth write-up on how Starbucks is using AI to improve its Starbucks Rewards loyalty program by clicking here.

Predictive Analytics for Anticipating Customer Needs

AI-powered predictive analytics is a game-changer in loyalty programs, enabling businesses to anticipate and fulfill customer needs before they are explicitly expressed. By analyzing historical data and patterns, businesses can proactively offer relevant rewards and incentives, enhancing the overall customer experience. When done correctly, anticipating future purchases before the customer realizes they actually need those items or services provides convenience to the customer. And that helps drive loyalty and advocacy.

Example: Amazon Prime

Amazon Prime utilizes AI-driven predictive analytics to recommend products, personalize shopping experiences, and anticipate user preferences. In the context of their loyalty program, this translates to tailored recommendations, exclusive deals, and timely offers based on a member’s browsing and purchasing history. The result is a highly individualized and engaging loyalty experience that keeps customers coming back. Additionally, member-specific discounts and services help drive demand for Prime and encourage signups.

Bonus: Amazon is also leveraging AI to shorten delivery times as we head into the Christmas shopping season. This means more products can be eligible for Prime’s magical 2-day shipping.

Chatbots for Seamless Interaction and Rewards Redemption

AI-driven chatbots have become integral to modern customer  service, and when integrated into loyalty programs, they offer a seamless way for customers to interact, inquire, and redeem rewards. This not only enhances customer convenience but also ensures a consistent and personalized brand experience. When leveraged correctly, AI-powered chatbots can actually deflect customer service tickets, leading to a significant cumulative cost savings.

Example: Sephora Beauty Insider Program

Sephora’s Beauty Insider Program employs AI-powered chatbots to assist members in real-time. Customers can inquire about product recommendations, learn about new arrivals, and even redeem rewards through the chat interface. The AI chatbot not only streamlines the customer journey but also provides personalized assistance, fostering a deeper connection between the customer and the brand.

Sidenote: I love how Sephora clearly illustrates the perks at each level of its Beauty Insider program right on its homepage. The visitor can clearly see which perks are for each tier, and how to level up to the next tier. BTW, here’s a very detailed review of the Beauty Insider program with a focus on its perks an rewards.

Fraud Detection and Enhanced Security

AI plays a critical role in safeguarding loyalty programs from fraudulent activities, ensuring the integrity of rewards and the trust of program participants. By employing machine learning algorithms, businesses can detect and prevent unauthorized access, fraudulent redemptions, and other security threats. This can help drive program signups as members feel their data, information and rewards will be protected.

Example: Delta SkyMiles Program

Delta Air Lines utilizes AI to monitor and identify irregular patterns in SkyMiles account activities. This includes detecting potentially fraudulent mileage redemptions or unauthorized access. The AI system triggers alerts and takes preventive measures to protect the integrity of the loyalty program and the rewards accrued by its members. Many SkyMiles members will accrue miles for years and set them aside for a special trip, so giving them additional peace of mind that account activity is being given an additional monitoring layer via AI is a comfort to members.

Conclusion:

In conclusion, these examples illustrate the transformative impact of AI on loyalty programs, from personalized rewards to predictive analytics, seamless interactions, and enhanced security. As businesses continue to embrace AI technologies, the future of loyalty programs promises even more tailored, engaging, and secure experiences for customers in all industries.

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Monday’s Marketing Minute: Facebook Wants to Charge Users, Grok Debuts, Brand Loyalty Drives Purchases

Happy Monday, y’all! I hope you are ready to have a productive week! Here’s a few business stories that have caught my eye over the last few days:

 

If you haven’t noticed, we are transitioning from social media being free, to being paid.  First Elon bought Twitter, which he claims was in huge financial distress (I believe him) and ever since he has been attempting to monetize basic features of Twitter which had always been free. Now, it looks like Meta is trying to do the same thing with Facebook and Instagram.  Under the guise of ‘we have to do this, we have no choice!’  Remember Elon has framed many of his initial monetization attempts as being necessary ‘to combat bots’ on Twitter. This is a big topic and I will have more to say on it in a full post on Thursday.

 

Elon has debuted Grok, X’s attempt at a ChatGPT/Claude AI rival.  And shockingly, it will be a feature only available to Premium X subscribers, tying into the first story.  Again, more on this on Thursday. The big advantage that Grok could have will be real-time access to tweets that can inform answers.

 

People buy from brands they trust. You can say that’s common sense, but if that’s the case, why is 99% of advertising aimed at acquiring NEW customers versus appealing to EXISTING ones? Also, note that for customers aged 55+, the only two significant drivers of purchases are past experience/trust in a brand, or a recommendation from a friend or family member.  That’s it. Which shows that advertising a brand that the customer is unfamiliar with has almost no impact on purchase behavior if that customer is 55 or over.

 

So that’s it for this week’s edition of Monday’s Marketing Minute, thanks for reading! Tomorrow will be the November Power List update for the Tourism industry, and on Thursday there will be a post on the trend of social media sites moving from free to paid.

There might be a Bible-related post on the weekend, I honestly haven’t decided yet. I do have a new app recommendation I want to share, and will do so if I write a post.

I hope you have a great week, please return tomorrow for the Tourism Power List for November!

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How to Leverage Online Platforms to Earn Sustainable Customer Loyalty in the Restaurant Industry

customer loyalty in the restaurant industry

Happy, loyal customers are the lifeblood of every business. They are especially important in more crowded and competitive marketplaces such as the restaurant industry. Customer loyalty is defined as a willingness of a person to continue to do business with your brand over competitors. Loyal customers will spend more, they will promote your restaurant to other customers, and they are far more likely to continue to do business with you. Whether its fine-dining, fast food or fast casual, achieving customer loyalty in the restaurant industry should be a priority for each and every segment.

In today’s hyper-connected world, the key is strategically engaging customers across digital platforms; from review sites to social media and beyond. If done correctly, restaurants can foster meaningful connections, demonstrate value, and inspire guests to return again and again through targeted digital loyalty strategies.

Let’s explore 7 powerful ways restaurant marketers can utilize online platforms to boost sustainable customer loyalty, backed by examples and expert insights:

#1) Monitor and Manage Your Online Reputation Proactively

Your online reputation has immense power to shape brand perceptions. Review sites such as Yelp, Google and Facebook are used often by potential patrons to learn more about a restaurant before visiting.

Experts recommend putting processes in place to:

  • Proactively monitor online review platforms and social media for brand mentions using tools like Hootsuite. You must be aware at all times of what is being said about your business, positive and negative. This applies to all businesses, not just those in the restaurant industry.
  • Move quickly to address negative reviews and comments constructively and with care. Here’s a pro tip: If the negative review or comment is specific to an individual visit, the person leaving the comment is likely a customer. If the review or comment is vague and focuses on your business with little specifics, it is more likely to simply be a troll. Focus more attention on negative feedback that is specific to one or more visits or purchases with your restaurant.
  • When it comes to positive mentions, many experts will simply suggest that you use those positive comments in your own marketing material and communications. That’s smart, but we want to go a step beyond that and make your customer loyalty strategy brilliant. Whenever you see a customer leaving a positive mention or review for your restaurant ALWAYS contact them and say THANK YOU.  You would be amazed at how happy you can make someone by simply showing appreciation for them. Always thank every customer for any positive mention. Often, the customer will be thrilled at your response and will continue to engage with your restaurant. When this happens, you can encourage them to continue to leave positive mentions online, you can ask them to take a survey, or perhaps even join your customer loyalty program. When you find a happy customer who is creating positive content for your restaurant, you want to connect with that customer, thank them, then encourage them to create more content. Keep in mind that more positive content about your restaurant posted on social media and review sites helps dilute any negative content.
  • Analyze trends in sentiments, locations, and issues to identify systemic problems requiring attention. This is especially important if you have multiple locations, each location should be delivering the same, exceptional experience to its customers. If one particular location is responsible for more complaints and negative content, its imperative to investigate the cause.  Likewise, if one location is responsible for more positive reviews than other locations, you want to determine what that one location is doing differently, and can it be replicated across other locations.
  • Establish internal protocols and guidelines for responding to complaints and feedback. Keep in mind that if a customer leaves a comment or feedback during business hours, they will likely expect a response as soon as possible. For instance, if a customer has an issue with an order placed at lunch today, they may go to your restaurant’s Facebook page and leave a comment expecting a CS agent to respond while they are still at the restaurant. If your CS team doesn’t see the response till the next day, one bad experience along with a slow response could result in a lost customer. Time is of the essence when delivering customer support via digital channels.

Proactive online reputation management turns critics into advocates. But executing effectively requires commitment, savvy communication skills, and analytics. With guidance, restaurants can safeguard and promote brand equity through an optimized online presence and integrated customer support response.

#2) Produce Engaging Social Media Content

Today’s consumers expect restaurants to maintain active, interesting social media channels. Developing a strong library of creative, branded content that engages followers in your brand story is essential.

Experts emphasize that effective social content strategies require:

  • Conducting social media audits assessing current performance and benchmarks. Social media audits should be done at least yearly.  Twice a year is even better.
  • Crafting content calendars tailored to your brand identity, audience interests, and key marketing initiatives. Take into account audience activity and which days and times they prefer to engage with your content.
  • Hiring professional photographers and content creators who understand how to create compelling content in all forms that is also branded consistently across all social channels.
  • Increasing community engagement through contests, UGC campaigns, holiday tie-ins, and time-bound festivals or events.
  • Tracking performance metrics constantly and optimizing based on insights. Strategy direction should evolve based on changes in data, and this should also factor into your regular social media audits.

This expertise in strategically leveraging social platforms helps restaurants earn loyalty through value-added content vs endless promos. In short, create content that’s focused on how your restaurant fits into the lives of your customers versus content that’s simply self-promotional.

#3) Optimize Digital Experience Across Channels

Customers engage with restaurant brands across an array of online and offline touchpoints – your website, app, social media, review sites, in-person visits, and more. Offering a consistent, frictionless experience across channels is vital for loyalty. Just as customers want the same level of service regardless of which of your locations they dine in, they also want to know that the same level of support they get on Twitter will me matched if they email or call support.

Consultants recommend:

  • Journey mapping exercises to identify pain points and areas for experience optimization across channels. Aggressive monitoring and surveys post support can greatly help identify bottlenecks and problem areas in the support process that should be addressed and corrected.
  • Improving personalization consistency through data integration and smart UX design across web, app, loyalty program experiences. Also, focus on the data that customers are comfortable sharing when you personalize shopping experiences.
  • Tight integration of data, order information, and customization across platforms to transition customers seamlessly. This is especially important for customers who order on a mobile app then pick up the order at a location.
  • Optimizing online ordering and booking based on mobile-first convenience. Offer easy pickup and delivery options. Perhaps one of the only benefits of dealing with covid in 2020 is that it forced companies in the restaurant industry to focus on contactless or ‘curbside pickup’ options. This provides a new level of convenience and safety for customers and is the expected norm. If your restaurant isn’t providing contactless pickup, it’s past time to add that to your customer experience.
  • Ensuring your website and apps offer optimal responsive design tailored to user needs vs company-centric content. Always consider how your customers use each device. For instance, customers on a mobile device are likely away from home, traveling, and only interested in using your mobile app to complete an immediate purchase. So deliver the content these users want, ie help them facilitate a transaction as quickly as possible.

With guidance optimizing every digital touchpoint, restaurants can craft cohesive customer experiences driving retention.

#4) Leverage Email Marketing for Targeted Outreach

Email marketing is quite valuable because while not everyone checks their social media feed every day, almost all of us do check our inbox. If you have a customer’s email address, that’s quite valuable, as it gives you direct access to that customer, either at home or on the go via their smartphones and mobile devices. Using email marketing to develop customer loyalty in the restaurant industry requires strategic list segmentation and messaging personalization based on rich customer data.

Experts emphasize that effective loyalty-focused email marketing requires:

  • Segmenting your subscriber list based on key factors like customer lifetime value, order frequency, purchase recency, demographics and preferences. Sugmentation allows you to customize the content and experience you deliver to your email subscribers.
  • Paying close attention to email engagement trends to identify the optimal send times and days for each segmented list. Track metrics such as open rate and clicks to determine when is the best time to send emails to your subscribers.
  • Developing campaigns targeted to customer needs, like re-engagement offers for lapsed patrons. Understanding subscriber behavior helps you deliver the email experience that’s most valuable to them.
  • Tracking email performance diligently to optimize your approach and improve deliverability. It’s vital to aggressive track email performance to identify what’s working, and what isn’t.  Double-down on what works, and work to correct the bottlenecks in your email campaigns.

Proper list segmentation, timely messaging, and perpetual optimization based on data is crucial for email marketing success. Leverage digital marketing experts to maximize this channel.

#5) Set Up an App-Based Loyalty Program

Loyalty programs are proven to boost retention when implemented correctly and marketed well. Consultants recommend:

  • Conducting analysis of customer data and pain points to determine the right loyalty program features and benefits to incentivize repeat visits. The focus of the app’s customer loyalty program should be rewards but keep in mind that rewards can extend beyond the purchase. Rewards should also be tied to experiences as well. If rewards are simply tied to the purchase, then you risk having users stop using the app once a reward for purchase has been redeemed.  Always remember that the goal of any customer loyalty program is to build loyalty to the brand, not the offer.
  • Building a customized branded mobile app tailored to house your loyalty program for easy access. The totality of the experience of participating in your loyalty program should be accessible from your mobile app. This encourages customers to purchase at your restaurant, and it also helps facilitate on-site feedback of the dining experience.
  • Tightly integrating app-based features like mobile wallet loyalty cards, specials, and rewards into your POS systems. Consistent branding experiences are vital. There needs to be a seamless transition from the app experience to the POS experience. A disconnect can lead to confusion and irritation by the customer if they can initiate a transaction easily via the mobile app, but cannot easily complete it in store.
  • Crafting strategic marketing plans across social media, email, in-store signage to drive membership. Make sure to point out the advantages of participation in your customer loyalty program. Also consider providing incentives to join, keeping in mind to balance the experience between offering products and experiences.  Both are vital to driving true customer loyalty.
  • Providing data dashboards to track key loyalty metrics like enrollments, active users, point redemptions.

The right advisor eliminates guesswork, guiding optimized loyalty program creation from the ground up based on your customers, resources and capabilities.

#6) Enable Online Ordering and Reservations

Digital convenience factors heavily in earning customer loyalty in the restaurant industry. Experts emphasize that restaurants should:

  • Offer seamless online reservations and waitlisting through your website or platforms like OpenTable or SevenRooms. Allow easy self-service booking. Give customers the convenience they expect.
  • Build your own ordering apps or integrate with major delivery apps to enable effortless to-go and delivery ordering. If your restaurant does integrate with delivery services, promote this on-site so customers will know that’s an option for their next order.
  • Offer order tracking and real-time messaging for delivery orders. Communication and transparency is key, and constant updates and communication helps establish trust with the customer.
  • Provide loyalty members exclusive early booking access or notification of available reservations. Earlier we talked about how your customer loyalty program should focus on providing a better experience to members instead of simply pushing discounts or sales. Giving loyalty members access to more booking options is a great example of giving experience-focused rewards.

Convenience through tech removes friction and earns loyalty. Prioritize digital ordering and booking.

#7) Provide Ongoing Staff Coaching

Your employees make a significant impact on the customer experience delivered. Investing in staff education around hospitality and digital engagement best practices is invaluable.

Consultants advise providing coaching to staff focused on:

  • Customer service techniques to resolve complaints and de-escalate issues. Empower resolution at the front lines. Staff in store and online should be trained to recognize legitimate complaints from real customers. Additionally, if a customer support handoff has to happen from social media channels to the main CS team, make sure staff in both departments are trained to provide a consistent and frictionless experience for the customer.
  • How to identify high-value regulars and personalize treatment accordingly. Simply acknowledging repeat customers communicates appreciation and attentiveness.
  • Maintaining brand standards consistently across digital touchpoints and in-person. Customers will notice if there is a disconnect in their experience.
  • Using systems and tools to capture guest feedback. Staff should be trained to know what feedback options are available, and which customers should be encouraged to participate.
  • Checking in patrons who booked reservations online. Even if your restaurant has on-site kiosks to facilitate or complete transactions, staff will still require training on how to use the kiosks, or how to deal with incoming orders if the kiosk goes down.

Expert-led coaching helps align your team to consistently deliver on digital CX initiatives.

The Path to Building Lasting Customer Loyalty in the Restaurant Industry

Winning sustainable loyalty from restaurant guests in a digital era takes strategy, commitment, and utilizing technology thoughtfully. With abundant diners craving connection and experiences from brands, the opportunity is immense.

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7 Ways Tech Brands Can Build Customer Loyalty Through Digital Experiences

customer loyalty technology industry

Building customer loyalty in the technology industry can be quite the challenge. The industry marketplace is crowded and this creates a very competitive environment for customer attention, much less loyalty. Unfortunately, the days of simply building a better mousetrap and reaping the financial rewards are long gone. Over two decades ago, Apple carved a niche in the music industry for itself with the iPod. Despite being a technically inferior product to competitors, Apple better understood WHY customers would want its product, and that made all the difference.

The reality is that today, you need a superior product AND a focus on designing superior customer experiences. Couple a great product with a great customer experience, and you can create genuine brand loyalty and turn current customers into passionate fans that love your brand. Let’s look at 7 ways that your technology company can tap into digital experiences to increase customer retention, loyalty and advocacy:

Leverage Social Media to Its Fullest Potential

Social media optimization is an easy starting point for a better digital experience. Still, you don’t want to simply create a presence on Twitter, Facebook and Instagram and call it a day.  Remember that technology customers tend to be more analytical. They are more interested in diving deeper into topics and 101 level content that can be found on some social media sites may not be their cup of tea.  For instance, if you want to stay up to date on the latest technology news, you are more likely to hang out on Reddit and LinkedIn than you are on Facebook and Instagram. No matter what industry you are in, always keep in mind what type of content your customers are looking for, and where they would expect to find it. Ditch the boilerplate when it comes to planning your social media strategy!

Here’s some tips to optimizing your social media efforts:

  • Responding promptly to comments, queries, and feedback shows you are listening. Don’t let mentions go unanswered. Warning: Make SURE the information you give is correct, and if you make a mistake, own it and apologize. Technology customers will often know your product as well as you do. So if you give incorrect information, they will call you out on it. However, if you can quickly correct any misinformation and act on the customer’s feedback, you will often win their approval and advocacy as a result. I’ve worked with technology companies like Dell that realized the benefits in real-time of connecting with customers and utilizing instant feedback from customers and acting on it. It can create big loyalty and advocacy wins for your brand.
  • Proactively highlighting and thanking followers who post about your brand or share content. I have a saying I tell all my clients: Reward the behavior you want to encourage. There is no easier way to encourage customers to create MORE positive content about your company than thanking them. Whenever you see any customer on any social media channel saying ANYTHING positive about your company, thank them immediately. You would be amazed at how many companies ignore customers who positively promote them. It’s the lowest hanging fruit in social media. Learn to say ‘Thank you!’ early and often.
  • Featuring user-generated content like reviews, unboxings, or creations showcasing your products. User content builds authenticity, and it is viewed as being more credible than content that comes from the brand itself.
  • BONUS TIP: Don’t be afraid to promote content from your customers who are promoting your brand. If a customer has written a blog post that includes an endorsement for your company, then promote it on your social channels! Ford used one of my tweets waaaay back in 2010 as a Promoted Tweet! The automaker was using content from fans and enthusiasts, as a way to draw attention to others who were talking favorably about the brand. As I said, it’s all about rewarding the behavior you want to encourage.

The more you reward and spotlight social media advocacy, the more it will grow.

Optimize User Experiences Across the Entire Journey

Every touchpoint that customers have with your technology shapes their loyalty. Ensuring seamless, frictionless experiences is crucial.

This means obsessively optimizing key user interactions like:

  • Onboarding – Making the setup, installation, and initial usage intuitive and simple. Remember that the first experience that customers have with your technology product or service will greatly impact their perception of it.
  • Education – Providing easy to follow instructions, tips, and how-to’s guide users in becoming experts. Additionally, giving customers easy access to help can not only divert customer support inquiries, it can help boost customer loyalty and advocacy!
  • Support – Fast, effective technical troubleshooting and customer service keeps users happy when issues arise. Make sure your CS department has easy access to Subject Matter Experts who can provide more technical support if necessary.
  • Upgrades – Migrations, new releases, and added features should build on the familiar and avoid disruption.  As long as the upgrade feels like an improvement, it will be welcome and lead to higher levels of customer satisfaction. But if every upgrade feels like ‘starting over’, it will lead to a frustrating experience for the customer, and could even prompt them to explore competitor’s offerings.

Mastering end-to-end user experience removes adoption barriers and frustration while exceeding expectations. Delighted users then pay it forward with referrals.  Remember, your best salespeople are your current, happy customers!

 

Build an Engaged User Community

What’s the difference between an audience and a community?  With an audience, all the interaction is one way, from the stage toward the seats.  With a community the interaction is happening from person to person. Creating a community around your products and services is one of the best ways that a technology company can build loyalty and advocacy from customers.

Consider digital community building strategies like:

  • Hosting user forums and groups to share tips, product hacks, feedback, and more. Let users help each other. BONUS: Over time, elevate the most proficient contributors to your group to the role of Moderator. This encourages more engagement from the group, and it signals to your user group that its users will share ownership of the group along with your company.
  • Promote user-generated content and reviews. Even if it promotes the creator as much as it does your brand.  Also, don’t be afraid to highlight 4-star reviews. Most customers actually view 4-star reviews as being more credible than 5-star reviews. If a product or service has all 5-star reviews, it looks suspicious. But if the reviews are excellent overall, a few 4-star or even 3-star reviews sprinkled in can actually make all the reviews as a group seem more credible.
  • Holding live or virtual events and meetups to cultivate relationships between fellow users and the brand. These can be intimate gatherers with a few customers, or massive user conferences like Adobe Summit. Remember, any time you can get your passionate customers and users together in the same place and interacting with each other, it’s good for your brand loyalty.
  • Private community groups on Facebook or Slack for power users. VIP access builds exclusivity, and is viewed as a perk or reward for your most passionate users.

Bringing users/customers together is a wonderful way to build affinity and loyalty toward your brand. Look for ways to connect your most passionate customers to each other, it will pay for itself every time.

Develop a Customer-Focused Content Strategy

Can I let you in on a secret? (Leans in) Content that’s useful to your customers makes it easier for them to trust you.  If you constantly create content that’s relevant to your customers, then they will actively seek out your content and it will reflect positively on your brand. It will also make your customers more receptive to all your brand’s communications.

Valuable types of loyalty-focused content include:

  • “Insider tips” or “pro tips” articles with advice for power users. This is content that’s targeted at your current customers, who have a higher degree of awareness and knowledge of your products and services.
  • Step-by-step how-to tutorials for maximizing capabilities. Become users’ go-to resource. Let’s say you buy a graphic design program for your mac. After a few weeks of using it, you feel like you have the basic functions and usage down, but you want to learn more. So you will start to seek our deeper dives and more detailed how-tos. Why not give your customers and users the content they will be looking for?  If you don’t give them this content, they will find it from another source, or another customer. And that customer might suggest using a competitor’s design program instead. Something to think about.
  • Sharing inspiring user stories and creations featured in the community. Applaud their innovation. Remember earlier how I talked about rewarding the behavior you want to encourage?  This is a perfect example of doing so. When your users create amazing content or art or whatever by using your products or services, put the spotlight on them! Make them feel like rock stars, because they are. All this will do is encourage and inspire more users to create more content with your technology.
  • Insights from product designers, founders or engineers. Pull back the curtain, make your SMEs (Subject Matter Experts) accessible to your community of users.
  • Sneak peeks and early access to new features or product roadmaps. This will be viewed as a perk by your users and they will greatly appreciate your brand giving them access that the ‘general public’ doesn’t have.

Content acts as fuel for loyalty when it highlights common user pain points and fulfills unmet informational needs.

 

Launch a Formal Loyalty or Brand Ambassador Program

Once you have identified your most passionate users and customers, it may be time to create a formal program to manage your ongoing relationship. This can be a loyalty program, or something more in-depth such as a brand ambassador program. In either event, you want to create an ongoing relationship with these customers where you can more easily access feedback from them as well as stay connected. Being in closer contact allows your brand to leverage these special customers to more easily communication key messages to the larger marketplace, as well as collect valuable feedback from your customer and userbase.

Tactics such as:

  • A tiered-points system with points/credits earned for actions like reviews, referrals, UGC. More engagement means more perks.
  • Early access to new products and sales. This could also include special access to your brand’s SMEs, designers, engineers, etc.
  • Swag, discount and free services. Also, create free swag just for your members. It will make them feel special to get a piece of clothing or device that the ‘general public’ doesn’t have, but it also creates word of mouth. People will ask where they got that special item, which then gives the user a chance to brag on themselves for being a member of your program and having ‘special access’!
  • Free products to review or prime positioning in marketing content. One year I worked with a tech company to facilitate an on-site customer event at its world headquarters. As part of the event, a camera crew was on hand to record the sessions and discussions. The following year we had the group back again, and I was again on hand to moderate the event. Part of the event included a sneak peek at a new commercial that the brand would be releasing that included some of the video that had been shot at the previous year’s event. While showing the commercial, one of the attendees suddenly burst into tears, and exclaimed ‘I just saw myself in the video!’ The brand had included a short clip of her speaking at the previous year’s event. Needless to say, it made a VERY positive impression on her!

Creating a well-structured brand ambassador program can greatly amplify your ability to engage your most passionate customers and boost customer loyalty. BONUS: Here’s how a brand ambassador program can work for a technology company.

 

Get Creative with Contests, Games, and Activities

Gamification, when done right, can tap into users’ competitive spirits and drive more active engagement with the brand.

Some examples can include:

  • Photo contests for fan art, or video contests for best product demo. Let users showcase their skills, let the larger community vote on the winners. Promote winners on the brand’s main marketing and social media channels, and use entries as repurposed content throughout the year.
  • Leaderboards and badges for top forum contributors. This is a great way to encourage more community involvement, plus badges and ‘digital flair’ serve to drive online word of mouth. For instance, give top forum contributors a badge they can display on their blog.
  • Referral and feedback quests with prizes or charity contributions. Increase advocacy behaviors.
  • Easter eggs hidden in products, packaging or content. Add an element of surprise and delight.
  • AR experiences along with virtual quests. These help add entertainment and functionality to your technology, along with giving unique digital experiences.

With a little creativity and strategic planning, your technology brand can develop endless quests and challenges that not only entertain users but get them more invested in your brand.  And a deeper investment leads to higher levels of loyalty.

 

Pull Data Insights to Refine Your Loyalty Strategy

The beauty of digital channels is the ability to closely track activity and glean actionable data insights that fuel constant optimization.

Analyze key metrics like:

  • User retention rates (churn rate) over time and after milestone actions. Keeping a close eye on churn, and what is prompting it, let’s you identify bottlenecks in the brand loyalty journey.
  • Web traffic source patterns showing top referral channels. This data gives you insights into where your most loyal customers and users are spending their time. This also helps you refine where your brand spends ITS time, so you can better connect with your customers where they are.
  • Behaviors that correlate to the most loyal vocal advocates. By constantly tracking and engaging with your brand advocates, you can build a persona and understanding of who they are, and the behaviors they engage in.
  • Touchpoints users frequently interact with. By mapping all touchpoints along the customer journey, you can identity where conversions are happening, and where churn is as well.
  • How advocacy amplifies at different customer spend levels.

Crunching user data identifies what is moving the needle on loyalty so you can double down on what works and change course when needed.

 

The Never-Ending Quest to Earn Customers for Life

True brand loyalty and advocacy cannot be bought. Consistently exceeding expectations and nurturing community are the digital building blocks for creating passionate fans that love your technology brand. While challenging in competitive, noisy tech environments, putting the customer first both on and offline establishes genuine connections.

With people increasingly turning to peers for product recommendations, earning customers for life through loyalty and advocacy is the most powerful marketing strategy you can pursue. Once again, your best salespeople are your current, happy customers. The strategies and tips listed in this article will give you the framework to begin cultivating an army of customers who are also advocates for your brand.

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Every Sports Franchise Needs a Chief Storyteller

Every sports franchise should hire a Chief Storyteller. This point was driven home recently as I re-watched one of my favorite movies, Moneyball. It’s written before about the business and marketing lessons you can learn from watching Moneyball.

If you aren’t familiar with the Moneyball story, at the end of the 2001 season, the Oakland A’s lost its two star players, Johnny Damon, and Jason Giambi, because the New York Yankees and Boston Red Sox could offer them more money. GM Billy Beane went to the A’s owner and implored him to please give Beane more money to spend on payroll so he could get better players.  The owner refused, and this left Beane scrambling to figure out how to keep the A’s competitive with far less money to spend than other ballclubs.

This led Beane to meet Peter Brand on a trip to meet with the Cleveland Indians. Brand had developed a system for identifying talented players who were undervalued due to ‘biases’ against them. Such as being ‘too old’, having a ‘funny pitch’, or whatever. Beane was intrigued by Brand’s ideas, so he hired him to be his Assistant GM. Together they began working on building a roster of 25 players who were undervalued, but still talented enough to make the A’s competitive.

As Beane began acquiring his desired players, even his own scouts had never heard of them. The movie shows A’s fans reading the paper prior to the start of the season and asking ‘Who are these bums?’  So obviously, the A’s had a brand awareness problem when it came to their new acquisitions.

And as the season started, the losses piled up. But after the All-Star break, the team started to click.  And they started to win.  A lot.  In fact, in September at the end of the regular season, the A’s actually set the American League record (at the time) for consecutive wins at 20. Here’s a recap of that 20th win, which could have been a movie all in itself:

So I was curious as I was watching Moneyball again, how did the success of the A’s in 2002 affect revenue?

Turns, out, not by much. Revenue for the A’s in 2001 was 90 million, and it increased to 96 million in 2002, an increase of roughly 7%. But in 2003, revenue for the A’s increased to 110 million, or 15%. Since the A’s 20-game win streak didn’t happen until the end of the season, much of its impact on revenue for the year was negated. Yet the excitement for how the 2002 season ended no doubt carried over into excitement for the 2003 season, contributing to the larger boost to revenue for that year.

While the 2002 A’s didn’t have many ‘star’ players, the pursuit of the record for most wins became the ‘story’ that sucked fans in. Unfortunately, not every sports franchise will have record-setting seasons that become stories that sell themselves. This is why sports franchises need to invest in Chief Storytellers.

The Chief Storyteller needs to first tell the story of the players, then tell the story of the fans. First with the players, we all follow our favorite sports teams, and as we do, we develop a fondness for certain players. We appreciate their accomplishments, especially if they overcome setbacks to help lead their team to victory.

Here’s an example.  The 2012 depth chart at RB for Alabama was loaded. The starter was Eddie Lacy, who would go on to have a long NFL career with the Packers. A pair of 5-star RB recruits TJ Yeldon and Kenyan Drake were added to the mix, both of who would also go onto have solid NFL careers. While TJ Yeldon was able to come in and immediately contribute in the 2012 season, Drake didn’t do as well, and was relegated to 3rd and 4th string on the depth chart.

Starter Eddie Lacy opted to go pro at the end of the 2012 season, so that should mean Drake would be due for more carries in 2013. However, in the 2013 recruiting class, Alabama signed the top running back in the nation, Derrick Henry. Drake’s production did increase in 2013, but Yeldon was the clear starter.

As the 2014 season began, Drake was beginning to grow into his role as a true all-purpose back.  Through 5 games in the 2014 season, Drake was averaging over 5 yards a carry, and a staggering 31.8 yards per catch. In the first 5 games, he had 6 touchdowns and averaged 10 yards every time he touched the ball. It looked like Drake was finally going to live up to the 5-star potential that Bama fans had been waiting to see since he signed with the Tide in 2012.

But in that 5th game, tragedy struck. Drake suffered a gruesome leg injury that ended his 2014 season just as it was getting started. At the time, it looked like it may have ended his career as well.

As the 2014 season progressed, Derrick Henry began to blossom. When the 2015 season started, it was obvious that the Alabama running game would be built around the future Heisman winner. Henry had an absolutely monster 2015 season, rushing for over 2,200.  The most amazing thing about Henry was that he never tired. It was not uncommon for Henry to get over 30 carries in a game in 2015.

Which meant Drake’s production as a running back was further limited. In fact, the Bama staff had to move Drake to field kickoffs just to find a way to get him on the field and producing in some way. And even that move didn’t bear fruit, as through his first 18 kickoff returns in 2015, Drake was averaging a very pedestrian 22 yards a return, with 0 TDs.

But all that changed on his last kickoff return of the year:

Just like that, Drake had scored his first, and only kickoff touchdown of his career. And Drake’s touchdown put the National Championship game firmly in Alabama’s control for the first time.

Alabama fans were aware of Drake’s story because we had followed his career. We knew he was a top recruit when he signed with Bama, we saw him finally coming into his own in 2014, before he broke his leg against Ole Miss. We were deflated to see how that might end his career, then elated for him when he scored this touchdown, that ended up being the score that clinched a 16th National Championship for the Crimson Tide.

A Chief Storyteller would be in a position to tell us the stories of our team’s players. If done correctly, it can almost become like a movie for each player. I am focusing on Drake’s story and how he helped Alabama win a National Championship, but there could be a parallel story to be told about how Derrick Henry finally realized his promise in his 2015 Heisman campaign. Or what about QB Jake Coker? He transferred to Alabama after being a backup at Florida State. He came to Alabama in 2014 as the presumed starter, and instead ended up being the backup to Blake Sims, who as the 3rd string running back the year prior. But Coker preserved, eventually won the starting job, and led his team to a National Championship.

So many player stories to tell, and each one helps the fans become more attached to their favorite team. Likewise, a Chief Storyteller could tell stories about the fans. Who are they, how long have they cheered for their favorite team? A Chief Storyteller should work to seek out stories from fans so they can be highlighted. This will help the team identify and connect with its fans the same way the fans connect with the players.

It’s all about using the power of story to build a deeper connection between the team and its fans. Because when you have that deeper connection, success is the only logical result.

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Now I Get Why Everyone is Excited About NFTs

For the last 6 months or so, I’ve been trying to wrap my head around NFTs, the Metaverse, crypto and all things web3. I decided to jump into this space because I suddenly saw that a LOT of smart people were moving toward these emerging technologies. Then I began to notice a huge talent drain; People at top positions in web 2.0 companies were leaving to join web3 startups.

All of this told me there was ‘something’ going on here that I needed to pay attention to.

So I dove in. When you start learning about web3, one of the first spaces to examine is NFTs. Honestly, it’s probably not the best entry point to learn about web3, because NFTs are so easily misunderstood. People are actually paying MILLIONS for a jpeg on their computer? How is this revolutionary?

I heard people say ‘Oh but it’s not just a file, you can get perks, you get access to a community!’ and all that sounded good, but in most cases it seemed like the NFT was mostly about the token itself. Whether that was a bored cat, a lazy dog, whatever.

And all of it looked like overhyped junk, if I’m being honest.
Then I saw this tweet from MetaFansNFT:

With Metafans, it’s not about the NFT, it’s about the experiences that unlock for you if you own a Metafans NFT. This tweet is from a Formula One race in Miami that MetaFans NFT holders were given special access to, just for owning a MetaFans NFT. MetaFans lets its NFT owners unlock special sporting experiences just for having an NFT from their collections. Sometimes they win a big discount on tickets, other times they win tickets and VIP access, all for being owners. The current calendar of events shows events in auto racing, The Preakness, and the MLB.

To me, this is a game-changer, and it shows the true potential of NFTs: As your entry point to both specialized experiences and a community of people interested in those same experiences.
And if you think about it, this could expand the concept of an NFT as your ticket to experiences to all areas of your life.

MetaFansNFT unlocks sporting experiences. But you could also have NFTs associated with:

  • Socializing/Dating
  • Work
  • School
  • Entertainment
  • Hobbies/Interests

We could, at one point in the near future, have an NFT associated with every major area of our lives. And this would allow us to have special access to not only customized experiences associated with that area, but access to a community of people who have the same interests and viewpoints as we do. And the NFT could unlock it all.

To me, this is getting back to the true potential of the internet. To give us the ability to interact with people that we could otherwise never talk to. If web 2.0 was about bringing everyone together (centralized) then web3 is about distilling us into smaller, more purposeful groups (decentralized).
Here’s an example: Let’s say you are obsessed with exploring caves in North Carolina. Sure, you love exploring caves in general, but there’s something about the caves in North Carolina that cannot be matched for you.

If you could join an online community that was focused on exploring the outdoors, would that interest you? Maybe.

What if you could join an online community that was devoted to exploring caves? Ok that’s got your interest.

But what if you could purchase an NFT that would unlock not only access to a community of 1,000 people who are devoted to exploring caves in North Carolina, but the NFT also unlocks your ability to JOIN community members on expeditions to caves in North Carolina? Of COURSE you would jump at the chance to be involved!

So keep an eye on the evolution of NFTs as a way to unlock specialized experiences and community access. I think this will be one of the areas that will be big for NFTs in the future.

 

PS: This post originally appeared as an issue of my newsletter Backstage Pass.  Backstage Pass is where I pull back the curtain and detail how companies are using emerging technologies to deliver amazing marketing and customer experiences.

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Case Study: Lego Ideas

Let’s talk about Lego Ideas. Whenever I work with companies on designing customer advocacy or brand ambassador programs, I always stress the need to incorporate customer feedback into the program. Members of any type of advocacy or ambassador program are hand-raisers.  They are your most passionate customers, and they feel a sense of ownership in your brand, and want to see it succeed. So they will happily provide your brand will plenty of feedback on what it’s doing right, what it’s doing wrong, and what it could be doing.

That’s why I love what Lego does with it’s Lego Ideas program. This is an initiative where Lego customers submit ideas for future playsets. Other customers can then vote on and provide feedback on each idea.  Submissions that are popular enough, go to market.

Other brands have tried similar programs, such as Starbucks My Starbucks Idea or Dell’s Ideastorm, and it’s always a big win for the brand and its customers.

Lego Ideas

Why is Lego Ideas a good idea?

In short, Lego Ideas gives Lego a way to let its customers design new products for the brand. Take this submission for the creation of a playset for the Nautilus from Jules Verne’s book 20,000 Leagues Under the Sea. First, everyone can rate the submission and leave comments. This means Lego can get detailed feedback from its customers on what they like and dislike about the submission. If Lego decides to eventually make the set, it can make the set incorporating the feedback it received from customers.

Additionally, if the set ever makes it to market, Lego has a ready-made customer base ready to buy the set. Also, if Lego does decide to produce a submission, 1% of the royalties from the set go to the designer.  Not a bad deal, and this gives fan designers an extra incentive to submit ideas.

The Power of Giving Ownership to Your Most Passionate Customers

Lego Ideas works because Lego understands the connection that its most passionate customers have with the brand. Customers with high degrees of loyalty to your brand often view themselves as owners of your brand.  They view it as THEIR brand as much as it is yours! So these passionate customers will act in what they perceive to be the best interest of the brand.  Their brand.

Lets say you just purchased a brand’s product for the first time.  So far, it’s been a pretty meh experience for you.  Not a great product, not a terrible one.

What if, tomorrow, a product manager calls you and invites you to join a product design program for the brand. Where you will be required to submit new product ideas, then spend the next 6-12 months promoting and engaging with other customers about the product, fleshing out the design and creating a model that’s ready to go to market. The brand will then take your idea to market, and give you 1% of the royalties.

What would be your response? You’d probably tell the brand to take a flying leap, right?

But what if this was a brand you adored?  A brand you evangelized to all your friends, buying every new product the brand offers.  If that brand, which you are insanely loyal to, offered you a chance to join a program like Lego Ideas, how would you react?  You would probably jump at the chance, right?

Customers that are loyal to a brand want more ways to be involved with the brand in all facets, from product design, to product feedback, to product promotion.

They want a program like Lego Ideas. And that’s why it’s a winner.

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New Research Uncovers the Drivers of Customer Loyalty

customer loyalty

I recently came across a new research study from Cheetah Digital (via MarketingCharts) that uncovers the reasons why customers have a ‘favorite’ brand. The study surveyed over 5,000 customers worldwide to determine the factors that drove brand loyalty. I wanted to cover the top seven drivers of customer loyalty:

The Top Seven Drivers of Customer Loyalty

Provides a Consistent Customer Experience (80%) I think an important caveat is that the brand provides a consistently GOOD customer experience. The experience is part of the brand, and according to this study, it’s the top driver of brand loyalty.

If a brand makes the effort to create a good experience for the customer, that communicates to the customer that they are valued and appreciated. You will see that valuing and appreciating the customer are common themes on this list of drivers of brand loyalty.

 

Rewards Customers For Their Loyalty (78%) This is the where most brands make their biggest mistake in attempting to cultivate brand loyalty. Most brands confuse rewards and incentives in the context of brand loyalty. A reward comes after the purchase. An incentive is given before the purchase in an attempt to change customer behavior.

A reward creates loyalty to the brand, an incentive creates loyalty to the incentive itself. For example, look at the classic punch card, designed to ‘reward’ the customer with a free purchase afer a set number of purchases are made. Maybe Pizza Hut has a deal where if you purchase the lunch buffet 10 times, you get a free purchase.  This is an incentive to change behavior, and it builds loyalty to the OFFER, not to the brand. You will be more likely to continue to purchase the lunch buffet at Pizza Hut UNTIL your punch card is filled. When you claim the free lunch buffet, then you have to start again at zero.  And your loyalty to the incentive resets to zero as well.

As I explain in this post; If you want to build loyalty among your customers always remember: Loyalty is built by saying ‘Thank you!’ for existing behavior, not by offering coupons as incentives for new behavior.

 

Uses Customer Data In a Way That Makes Them Feel Comfortable (74%) Data privacy is top of mind for all customers. Most customers are very concerned over how their data can be used, or misused by brands. Transparency is imperative to building trust with consumers, and that’s especially true when it comes to customer data. Brands that are clear and forthright with how they collect and use a customer’s data are more likely to build trust with customers, which is the prerequisite for building loyalty.

 

Treats the Customer as an Individual (74%) This speaks to the desire that customers have for a personalized experience. Every customer has different wants and desires, and when a brand can give us a personalized customer experience, the brand is communicating to us that we are worth communicating to as an individual. It shows us that the brand appreciates us enough to put forth an effort to customize its communications with us.  That communicates respect and appreciation, and it makes it easier for us to adopt those same traits back to the brand.

 

Strives to Develop a Relationship (71%) This is one of the biggest misconceptions that brands have when communicating with customers. Most brands attempt to develop relationships with NEW customers, but ignore CURRENT customers. This thinking is completely out of phase, new customers typically have no interest in building a relationship with a brand. On the other hand, repeat customers are more likely to be loyal to the brand and more likely to be open to developing a relationship with the brand. Additionally, repeat customers can better serve the brand as they have a better understanding of its products/services and can better promote the brand to new customers.

 

Surprises Them With Rewards They Don’t Expect (64%) Unexpected rewards communicate appreciation. But remember, an unexpected reward is a ‘thank you’, not an incentive to make a future purchase. Sending a customer an email with discount codes for a ‘secret sale’ isn’t an unexpected reward. It’s an incentive to make a purchase, and your customers will see it as such. But a handwritten note from the manager thanking the customer for their business and delivered with a small box of gourmet cookies, that’s an unexpected reward and the customer will love and appreciate the gesture.

 

Treats Them Like a VIP (58%) This ties in with the previous point. The brands that do the best job of cultivating advocates understand the importance of their current customers and treat them as the special customers that they are. A good way to treat current customers as VIPs is to appreciate and reward them for what they are doing to help build and promote your brand.  Say ‘Thank you’ with no expectation of future purchases, but as appreciation for past behavior. Communicate to your customers what impact they have on your brand and thank them for it. You will find that by doing so, your loyal customers will work even harder for your brand.

 

Want to learn more about how to build a brand that cultivates customer loyalty?  Here’s every article I’ve written on brand loyalty.  Have questions about how to implement these strategies for your own brand?  Feel free to email me and I’ll be happy to answer any questions you have.

 

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What is Your Product’s ‘Job to Be Done’?

job to be done Whenever I talk with clients about positioning a new or even existing product or service, I stress the need for there to be a clear benefit to the customer, that the customer can clearly understand. The customer needs to understand how a product or service will fit into their lives, and immediately make a positive impact.

Some would argue, that the ease of collecting data about modern customers can actually make it more difficult to correctly identify the value that a product can create for a customer. Sometimes, customers simply buy a product for reasons that are their own, that really aren’t easily uncovered by simply looking at data or demographics.

Let me give you a couple of examples:

1 – I never chew gum UNLESS I am about to board a plane for a flight. If I am at an airport, one of the last purchases I will make will be to run into a gift shop or Hudson News and grab a pack of chewing gum. I want the gum because chewing the gum as the plane is taking off and climbing helps lower the chance of my ears popping! So I never need chewing gum UNLESS I am about to board a plane, then it’s a purchase I always make.

2 – I am currently playing a war game on my iPhone. The game includes chat functionality, and in playing the game, you can chat with other players and get to know them. I was talking to a player recently who said they enjoyed playing this game. They went on to explain that one of their parents had just died, and they were having to deal with the stress and worry associated with a parent’s death. They added that playing the game gave them a very welcome distraction that helped them get their mind off their real world issues.

 

I recently came across a wonderful article in the Harvard Business Review that explains this concept as buying a product for it’s Job to Be Done. For me, chewing gum bought at the airport has a job to do: Keep my ears from popping during takeoff. For my friend, playing the phone game had a job to do: Provide escape from their real world problems.

Here’s an example from the article: A consultant was hired by a Detroit building company to increase sales of its condominiums. The condos were positioned to retired couples that were looking to downsize from a larger home to a smaller condo. The units were given features designed to appeal to downsizers, and they even consulted focus groups to uncover any additional features they might have missed.

But sales were disappointing. The units generated prospective buyer visits, but struggled to close the deal. There was a bottleneck, something holding back the prospective buyer from becoming an actual one.

So the consultant decided to switch gears, and went back and started interviewing the people that had bought the units. The interviews were designed to help drill down on what prompted the person to commit to the purchase.

It turns out, it was the dining room table. Or rather, what the dining room table represented for the prospective buyer; Moving on from a home they loved, to a new condominium that had none of the attached memories.

As the article explains:

But as Moesta sat at his own dining room table with his family over Christmas, he suddenly understood. Every birthday was spent around that table. Every holiday. Homework was spread out on it. The table represented family.

What was stopping buyers from making the decision to move, he hypothesized, was not a feature that the construction company had failed to offer but rather the anxiety that came with giving up something that had profound meaning. The decision to buy a six-figure condo, it turned out, often hinged on a family member’s willingness to take custody of a clunky piece of used furniture.

This helped the company understand the Job to Be Done of its condos. It wasn’t about giving them a new place to live, it was about moving their lives into a new phase. The dining room table represented family, tradition, history. So the building company changed its offerings around the condos to reflect a better understanding of what was holding prospective buyers back from becoming actual buyers. They expanded the dining area to give more room to accommodate a larger dining room table. The company also added storage facilities to help buyers have a place to store items until it could decide what could be kept and what needed to be given away.

All of this goes back to simply understanding the customer. And with the ‘job to be done’ line of thinking, you are also thinking about ways to incorporate unpredictability into the lives of your customers. Every day, your customers are receiving unexpected good and bad news. In both cases, behavior patterns, either in the short or long-term, will immediately change.  They will suddenly need new products for new reasons to fulfill new ‘jobs’ for them.

Think back to the last two years and the impact that the covid pandemic has had on the world. If you will remember, one of the constant themes I have stressed here is considering how the pandemic would change the purchasing behavior of your customers. Some of the changes are big and easy to predict, such as a shift toward takeout from restaurants over dining in person. But other changes are harder to detect. But you need to be able to account of the possibility of changes and the resulting shift in purchasing behavior.

Here again is the link to the HBR review article detailing the theory of ‘job to be done’.

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Here’s the 1% of Your Customer Base You Should Grow

In 2005, Alabama football started the season with an unexpectedly strong showing. The Tide, coming off a 6-win season in 2004, jumped out to a 4-0 start and #16 ranking heading into an October 1st matchup against #5 Florida. The game was in Tuscaloosa, and the excitement was palpable. Adding to the intensity, was the fact that all week heading into the game, the fact that Alabama had never beaten a Top 5 opponent in Tuscaloosa was repeated endlessly.

As you might expect, ticket prices for the game were through the roof, but I decided to go to the game just to be on campus and soak in the experience.  Due to traffic I got to the stadium a few minutes into the game. Outside the stadium there were multiple televisions set up so fans could watch the game. The game was being broadcast on CBS, and I began to circle the stadium heading toward the nearest television so I could watch the game.

The game was in the first few minutes of the first quarter. As I was walking, I could hear the roar of the crowd, it was very loud. A play started, and I then heard what almost sounded like a gasp from the entire crowd then what can only be called an explosion of sound. The sudden roaring of the crowd was so loud, that I could literally FEEL the audio waves coming from the stadium as I walked outside it.

This is what was happening inside the stadium at that moment (volume UP):

 

In 2018, Twitch streamers Nickmercs and Aydan were competing in a Fortnite tournament, and one of the perks was that if the team could eliminate a certain number of players in a specific time they could collect a $30,000 prize bonus.

As the duo got closer to winning the Make It Rain bonus, they were having trouble concentrating because debris from the ceiling kept falling on them as they was playing.

The crowd’s roar was so loud as Nickmercs and Aydan kept eliminating players that the ceiling was vibrating, and it was causing debris to fall down on the players.

 

We all start at zero

I’ve always been completely enamored with how entities and personalities in music, entertainment and sports/esports can create fans that are as passionate as the fans you see in the above two clips. One of the reasons why I wrote Think Like a Rock Star was to help companies understand how these fans are created, so those businesses can also create passionate fans.

One of the biggest misconceptions businesses have about creating fans is the belief that fans just ‘happen’ for people and companies in certain industries like sports, music, and entertainment.

Nickmercs is one of the streamers in the above video.  He’s also one of the hottest streamers in the world right now, and a few weeks ago he had over 400,000 viewers for one stream.

But recently, he tweeted out a reminder that in 2014, he was celebrating the fact that he had hit 170 viewers on a stream:

And he was excited about having 170 viewers, because he started with 0. All Twitch streamers do.

All businesses start with 0 happy customers. We ALL start at 0.

Reverse-engineering the Roar

Another huge misconception businesses have is that they can’t create fans like Alabama football does, or like Taylor Swift does or like Nickmercs does.

Let’s go back to the first example in this post of the Alabama football game. It’s easy for your business to look at that and think, “We could never have fans like that!”

Are you SURE about that?

Let’s break down that example. How many people are there that would claim to be Alabama football fans?  I have no earthly idea and it would be almost impossible to measure. For the purposes of this post, let’s say there are 10 Million people who self-identify as being Alabama fans.

The above Alabama-Florida game had roughly 80,000 people in attendance. Let’s say there were another 20,000 fans outside the stadium and in the area.  So for the purposes of this post, there were 100,000 Alabama fans who were passionate enough about the Crimson Tide to come to Tuscaloosa to see that game.

100,000 is 1% of 10 Million. So that means that only 1% of Alabama football fans were passionate enough about the Crimson Tide to come to Tuscaloosa on October 1st, 2005, to see them play.

So all the passion and electricity you saw in that video above, that wasn’t Alabama football fans.  That was the 1% of Alabama football fans who are the MOST PASSIONATE about the Crimson Tide.

Think about your business. How many customers do you have?

Let’s say your VP of Marketing wants to create a conference just for your customers.

Could you get enough customers to attend to make the event viable?  Maybe not.

But do you think you could get 1% of your customers to attend?  Yeah, that’s a possibility.

Then how is your business different from Alabama football or NickMercs or Taylor Swift when it comes to creating passionate customers that love you?

It isn’t. The difference is, Alabama football and NickMercs and Taylor Swift do a better job of ENGAGING their fans than your business does.

 

Excitement breeds excitement

Let’s say your business has 1,000 customers. 1% of 1,000 is 10. So you have about 10 customers that absolutely love your business.

Who are those customers? You should know who they are, their names, what they do. Your business should be in constant contact with them. Your business should empower those 1% of your customers to tell others about your business.

Let your most passionate customers be your best salespeople. Let them sing your praises to others. They are already doing this (because they love you), your business just needs to be smart enough to give them better tools to do what they are already doing.

That will lead to more customers for your business. And once your current customers see how you are engaging with, embracing and empowering your 1%, it will make them want to join that 1%.

What if your business could grow its customer base by 10% a year, and increase its 1% of customers that love you by another percentage point every year?

So start out with 1,000 customers and 10 customers who love you.

The next year, you have 1,100 customers and 20 customers who love you.

The third year, you have 1,210 customers and 30 customers who love you.

The fourth year, you have 1,331 customers and 52 customers who love you.

The fifth year, you have 1,462 customers and 73 customers who love you.

 

So in just 5 years, your customer base could grow by almost 50%, and the number of customers who love you could increase over sevenfold.

Think of the impact that amount of growth could have on your business. And it’s not just growth, it’s cumulative growth, fueled by engaging just 1% of your customers, and letting them spread their passion for your business to others.

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